Another correction to TIRG licence condition

Ofgem consultation (21 pages, 6M scanned PDF) on a proposal developed by SP Transmission, at National Grid's request, to de-couple capital expenditure assumptions for some upgrade works in Southern Scotland for the England-Scotland electricity interconnector from any delays to the Beauly-Denny project intended to connect generation in the North of Scotland.

These capital expenditure assumptions feed into revenues allowances through the TIRG (transmission investment for renewable generation) scheme, which was established in 2003 and continues to operate in parallel with the main transmission price control from 2007. Ofgem had not foreseen the potential delay to Beauly-Denny in its original formulation of the TIRG licence condition for SP Transmission, and a licence modification will be needed to allow funding for the works on the England-Scotland infrastructure irrespective of progress with Beauly-Denny. The licence condition was recently modified to allow some other design changes for the England-Scotland interconnector upgrade.

Short consultation period: responses by Tuesday 26 June 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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